Good progress on infrastructure but challenges remain

There has been pleasing progress over the past
year on a long term and challenging infrastructure
programme, says National Infrastructure Advisory Board Chair
Dr Rod Carr.

His comments follow the publication today
of the 2013 National State of Infrastructure Report,
prepared by the Treasury’s National Infrastructure Unit
with input from across infrastructure sectors.

“Over the last year we have seen a continuation of the
large scale investment programme across central government,
local government and the private sector. The significant
levels of spending reflect the importance that
infrastructure plays in providing both a foundation and a
catalyst for economic growth,” says Dr Carr.

“A
year further into the implementation of the challenging work
programme, we can see progress especially in the fundamental
infrastructure networks such as fast broadband, electricity
transmission and the key transport networks to move freight
and people.

“It is also good to see improvements in
areas that help deliver good infrastructure. These include
streamlining the planning system, increased coordination
within and across regions for infrastructure planning, and
innovation and efficiencies being driven by local government
in the roading sector. I’m particularly pleased by the
ownership local authorities have assumed to increase
capability and better understand infrastructure provision to
their communities, especially in the water sector.

“Having said this, a number of the challenges we
identified two years ago remain and it is important that we
keep making inroads on these. In particular, we see
potential for much greater alignment between the land use
proposals in the proposed Auckland Unitary Plan, the
integrated transport plan and the strategic vision of the
Auckland Plan. Meanwhile, we welcome the government’s
announced plan for investment in major Auckland transport
projects and look forward to confirmation that the timing
and mix of projects is well supported by business case
analysis.

“Another area that needs further progress
is water. It’s a strategic asset for New Zealand and
essential to a significant portion of our exports. The
freshwater programme is a good start, and it is imperative
to deliver the subsequent work planned on allocation,
transfer and trade: these need to drive the right incentives
for the efficient use of this precious resource.

“The financial and economic significance of many
transport and water projects, and the intergenerational
effects they have, highlight the importance of robust
investment analysis through the business case process and
the importance of the right infrastructure, in the right
place, at the right time.

“Across all infrastructure
sectors, there is still work to do to ensure that
infrastructure investments are subject to the right scrutiny
and that they are aligned to broader goals and
objectives.”

Dr Carr noted that over the next year,
the National Infrastructure Advisory Board is looking
forward to an increasingly mature discussion around demand
management and ways to better use our existing
infrastructure.

“Constantly looking to spend more
is not an option in our foreseeable future and it is
important that this discussion is had.

“Also next
year, we look forward to the publication of the evidence
base that the National Infrastructure Unit has been
collating and the discussions across the infrastructure
sector about what this means and how best to respond as a
country to our future infrastructure needs. The 2011
National Infrastructure Plan highlighted the lack of a
robust information base as a major constraint, and work has
been underway to address this issue.”

Dr Carr noted
the Board’s appreciation of the large number of
infrastructure agencies and organisations involved in
working with the National Infrastructure Unit in preparing
the
Report.

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